MORTGAGE REFINANCING SIGNED At the 2011 Annual Congregational Meeting, the congregation voted to approve refinancing for Shepherd of the Hills with the provision that the members be notified when the details were settled. The refinancing papers were signed on June 21, 2011 by the President and Secretary of the church [Laura Dilley & Karen Russell]. The existing mortgage at Wachovia [now Wells Fargo] will be paid off on June 23, or 24, 2011.
THE DETAILS The new financing of the remaining unpaid principle on our church is a 30 year amortized variable rate loan with interest rate renegotiated ‘in good faith’ every 5 years. The first five year locked interest rate is 4.0%. The monthly mortgage payment has dropped over $2,000. The new monthly mortgage payment is $2,721.33. This will be paid with a monthly automatic debit to a lender numbered account. The plan is to continue to make extra payments toward the principle. The total amount refinanced is $570,013.84. There is no prepayment penalty.
The previous mortgage payment varied monthly with the current interest rate but was usually around $4,500. As interest rate rises with the inflation predicted within the next year, the mortgage payment would have continued to increase as well. Given current member contributions, meeting a rising mortgage payment would have been very difficult. Financially, we struggle some with cash flow and paying our bills every summer as it currently stands.
The lender is a private individual known to our church and the Clermont community. The investor wishes to remain anonymous. In the unlikely event of the investor’s death, the mortgage refinancing would continue with the heirs to the lender’s estate as currently written through the end of the 30 year period.